New Ulm weekly review. [volume] (New Ulm, Minn.) 1878-1892, 1887-01-12

that do not grace the gifted mind of the
Hon Hon Ignatius Donnelly. After the joint
session Is 'ota Of our Legislature that had list
ened to the closing message 21GoY: Huo' !
bard and the inaugural address OF Gov.
Nc Gill, had adjourned and the house
had reconvened, the ancient warrior in
PRODUCED the following bills; House File
No, 1. a bill to regulate the rate interest
at $5 per 800 per annum, unless other.
wise provided for in writing, and that
no corporation. ETC.. shall charge more
than SO per 800 per annurn as interest;
suppressing usury and protecting pur-
chasers Of usurious commercial paper:
forbidding compounded interest, etc.
House File No. 2. Amending article 4
of the Constitution by the addition of a
Section IS to it, relating to the freedom
of markets. 1t is made criminal con.
spiracy for any corporation, etc, to in
'4erfere with or restrain The markets, or
to secure a monopoly OF Or decrease the
value Of products, and to be punished
the same as the crime of robbery. This
amendment to be voted on at the next
general election.-If by interfering with
or restraining the freedom of markets a
corporation commits robbery, the State
certainly does not practice the purest
kind of virtue when it takes upon its
shoulders the task of interfering with
the freedom of the money-marAet.
There is probably not another subject
in political economy on which such ex-
travagant notions are entertained by a
great many, as Hsury. There was a
time when all commerce was looked
upon as disreputable; when enrichment
by violence was far more honorable
than the slower accumulation of wealth
through the profits resulting from an
exchange of commodities; and when a
Roman senator was deemed unworthy
Of retaining his seat if his name was
connected with commercial enterprises
Of any kind. But that time has passed
commercial transactions must be exam;
ined in the light Of the present day. If
it is proper to fix by law the rate at
which money shall be loaned, why
should similar restrictions not be placed
on other exchanges? Money is simply
form Of property; in all cash purchas.
es and sales we exchange property fo1
property. There is not even the sem,
blance of justice in the enactment Of a
usury law. The state might as well
fix the marketrate for the rent of s
mans house or for the hire of horse,
as to fix the price to be paid for the use
Of money. The money-marketi is under
the same law Of supply and demand as
5 Observation-Disclosures and every other mar.
ket. Aside from this, there are addi
tional considerations that influence the
market-rate for the use Of money. The
lender OF money will consider the risk
he incurs IN assigning to another the
control of a portion Of his property fol
specified time. He will consider the
b permanency Of the investment, the ia.
I cilities Of transfer, punctuality in pay
ing interest, etc. Legislation cannot
control these conditions on which The
rate of interest depends. In attempting
to fix the price Of money it only in
ereases the burden Of the borrower, b!
increasing the risk incurred by the len
der. It is a nc torious fact that nsury
laws have always been disregarded o.
evaded wherever they existed. It is
well enough for the state to fix some lie
gal rate OF interest that shall apply t,
all contracts in which no rate is speci
fed; but a nsury law for any purpos,
other than this embodies too much in
justice and fogyisnl for 4 sage Of Mr.
Donnelly's dimensions to dote upon